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City Harvest Church appeal verdict: Kong Hee & Co still going to jail BUT Singapore High Court cuts jail terms

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Six church leaders get reduced jail terms, Kong Hee gets 3.5 years
High Court's split 2-1 ruling on appeal extremely significant, say lawyers
By Selina Lum and Ng Huiwen, The Straits Times, 8 Apr 2017

In a courtroom packed with supporters and a few detractors, City Harvest Church founder Kong Hee sat expressionless when he was told he will serve 31/2 years in jail - the final twist in one of Singapore's longest-running criminal trials.

It was less than half of the original sentence he had been facing, but in a split 2-1 High Court decision on appeal, the bench majority decided to reduce the 52-year-old's criminal breach of trust (CBT) charge to a less serious one.

Five other current and former church leaders, who in 2012 were accused of misappropriating $50 million in church money to fund the Crossover Project in a failed bid to promote the pop music career of Kong's wife Ho Yeow Sun, and then to cover up their tracks, also saw their jail terms slashed - despite the prosecution's appeal for longer terms.

Deputy senior pastor Tan Ye Peng, 44, had his 51/2 years in jail cut to three years and two months.

Former fund manager Chew Eng Han, 56, who originally got six years in jail, had it reduced to three years and four months. Former finance manager Serina Wee, 40, had her five-year jail term halved to 21/2 years.

The three-year sentence of former finance committee member John Lam, 49, was also halved. Former finance manager Sharon Tan, 41, will be jailed for seven months instead of 21 months.



"While the conviction being upheld is not what I have hoped for, I am grateful that the sentence has been reduced," Kong, whom the judges described as the "mastermind", said later.

Yesterday's ruling capped a case which has engrossed the public since 2010, when the authorities started probing the affairs of the City Harvest Church, seven years after a church member first made allegations that building funds were being misused.

The investigations cast a spotlight on Kong's prosperity gospel, which marries materialism with spiritualism, and the attempt by the church, which at its peak had 30,000 congregants, to reach out to the "unchurched" by turning Mandarin pop singer Ho into a star in America.

Ho starred in several racy videos, including China Wine, which featured Wyclef Jean and was widely viewed and criticised on YouTube.



During a marathon 142-day trial, which started in 2013, it was revealed how the six had channelled $24 million from CHC's building fund into sham bonds in music production company Xtron and glass-maker Firna. The money was in fact used to fund the Crossover Project.

Later, another $26 million was used to cover up the sham bond investments.


The prosecution, believing that the 2015 jail terms which ranged from 21 months to eight years were inadequate, filed appeals. All six accused also appealed against their conviction and sentence.

Kong's role as the "spiritual leader of the other appellants", whom he led and mentored, ought to be reflected in the sentences imposed, said the court yesterday, explaining why he received the longest jail term. But "none of the appellants, particularly Eng Han, Ye Peng, John Lam, Serina and Sharon, could be said to have gained anything from what they did other than pursuing the objectives of CHC. Their fault lies in adopting the wrong means", said Judge of Appeal Chao Hick Tin.



The dissenting judge, Justice Chan Seng Onn, however, said it was very clear Kong's wife had benefited directly and Kong indirectly from criminally misappropriated funds to fund her music career. Justice Woo Bih Li was the other judge who ruled on the appeal.

The ruling was described by lawyers as "extremely significant", given that the court departed from a four-decade-old legal position and reinterpreted Section 409 of the Penal Code, the provision governing the role of agents in CBT.










City Harvest appeal: AGC is considering whether it is possible to take further steps, says Shanmugam
By Charissa Yong, The Straits Times, 8 Apr 2017

The Attorney-General's Chambers (AGC) is considering whether it is possible to take further steps on the City Harvest Church case and will decide by early next week, said Law and Home Affairs Minister K. Shanmugam on Saturday (Apr 8).

All six church leaders convicted of criminal breach of trust got their sentences reduced by a three-judge panel under the appeal verdict released a day earlier.

In November 2015, the six, including church founder Kong Hee, were handed jail terms ranging from 21 months to eight years in the largest case of misuse of charitable funds in Singapore history.

All six appealed against their conviction, while the AGC appealed against the sentences for being too low.

Mr Shanmugam, who was at a racial and religious harmony event in Toa Payoh on Saturday, said: "The media is reporting that the matter is over, that this is final. Not quite. The matter is not over yet."

He told reporters that the Government agreed with the AGC's view that the original sentence was too low.



Church founder Kong Hee was originally handed an eight-year jail sentence, which was reduced to 3 1/2 years on Friday. The other five church leaders also had their jail terms reduced after the court, in a split 2-1 decision, found them guilty of a less serious charge of criminal breach of trust.

Referring to three High Court judges and one State Court judge who heard the case, Mr Shanmugam said that in terms of judges, two judges had thought that the sentences should stay or be raised. Another two judges thought the sentences should be lower, which resulted in the eventual decision to reduce the sentence.

The key reason was that the church directors were not considered to be agents, as laid out under Section 409 of the Penal Code which deals with criminal breach of trust. The judges thus found them guilty of a reduced charge of criminal breach of trust.

Said Mr Shanmugam: "From the Government's point of view, this reasoning, this legal reasoning has serious implications in other cases, including corruption cases and our zero-tolerance approach for the future.

"We will have to consider as a matter of policy what other steps to take because we cannot relax our stand on that," he said, citing as examples where directors take bribes. The minister said he had "asked AGC to advise whether we need to do anything".

But he also sounded a note of caution as he said:"I can understand that people have different views on the High Court judgment." Mr Shanmugam said that while people have a right to have their views on the judgment, they should be careful about abusing judges personally or "casting improper ulterior motives" on the judgments.

"The reasoning is there, they set it out, we agree, disagree, and from a Government point of view if we disagree then we always consider what we do. If necessary we legislate through Parliament," he said.

The six church leaders had channelled $24 million from CHC's building fund into sham bonds in music production company Xtron and glass-maker Firna. They used the money to fund the singing career of Kong's wife, Ms Ho Yeow Sun, as part of the Crossover Project, a church mission which they said was to evangelise through Ms Ho's music.

Later, another $26 million was used to cover up the sham bond investments.

Mr Shanmugam said he has "also noted the court's comments on the way the matter was handled by the prosecution".

The High Court had, in its judgment, commented on how the prosecution had run its case.

The court noted that the prosecution had not focused on any gain to third parties due to the church leaders' actions, even though this may have been suggested in the charges.

While the prosecution did attempt to touch on the gains by Kong's wife, Ms Sun, this point was not raised in its written submissions for the appeal and was also not raised before the Judge.

"In the circumstances, we approach the sentencing in this case as one without any element of wrongful gain or personal financial benefit, either direct or indirect," said the judgment.

Mr Shanmugam said that he had asked the new Attorney-General Lucien Wong and deputy Attorney-Generals to look into the matter.

"It may take time but we have good people at the top and they should be able to deal with that," he told reporters.

















Six not motivated by personal gain: Judges
By Ng Huiwen, The Straits Times, 8 Apr 2017

They were not motivated by personal gain and they thought they were acting in the best interests of City Harvest Church (CHC).

Ultimately, the church leaders believed their actions would advance the Crossover Project, a church mission to spread the Gospel through pop music, and this was generally supported by the congregation.

These were the "exceptional" mitigating factors considered by a three-judge panel, in reducing the jail terms for the six convicted CHC leaders yesterday.

In a 304-page written judgment, the judges noted that the case should not be seen as a "sinister and malicious attempt" by the six to use the church's funds for their own purposes, despite the huge sum of about $50 million involved.

Rather, they had "resorted to deceit and lies", such as hiding the truth of their transactions from auditors and lawyers, because they wanted to keep the use of the church's monies for the Crossover Project confidential.

They also feared questions would be asked, the judges said, adding that "their fault lies in adopting the wrong means".



On the issue of personal gain, the judges said that while the prosecution noted in its oral submissions that there was benefit accrued to Kong Hee's wife, Ms Ho Yeow Sun, this was not raised in its written submissions for the appeal. The issue of personal benefit was, therefore, not factored into the sentencing.

The prosecution, calling for stiffer sentences, stressed the misappropriation of charity funds as among the aggravating factors.

But the court clarified that while CHC is a charity organisation, it is not a charity that is also an Institution of a Public Character. This means that donations to the church are not tax-deductible. Thus, donations to church funds "are invariably made by its members for the benefit of the church" and do not serve the community as a whole.

In addition, the six, though "reckless" with the funds, had no intention of causing permanent financial loss to the church.

"The appellants had, at all times, intended for the funds... to be eventually returned to CHC with the stated interest even if they might not have been entirely sure as to how or when they could do so at the time," the judges said.

In meting out the harshest sentence among the six to Kong, the judges agreed that he was the "ultimate leader" of the five others.









Five key highlights of the judgment
By Ng Huiwen, The Straits Times, 8 Apr 2017

WHY WERE THE CBT CHARGES REDUCED?

The court found that City Harvest Church founder Kong Hee, 52, deputy senior pastor Tan Ye Peng, 44, and former finance committee member John Lam, 49, were not "agents" entrusted with dominion over CHC's funds.

While they held important positions in the church, it does not mean they were offering their "services as an agent to the community at large" or making their living as an agent. This is unlike a banker, a broker or a lawyer.

With this, the aggravated charge of CBT under Section 409 of the Penal Code, which involves CBT by a public servant, banker, merchant or agent, was reduced to a simpler charge under Section 406.

The lesser charge of CBT had a "significant impact" in the reduction of the sentences, as the maximum punishments of the two are "markedly different", the court said. The maximum jail terms under Section 406 are less than half that for those under Section 409.

Despite the huge sum of about $50 million involved, the court recognised that there had been no personal gain, among other mitigating factors, and "their fault lies in adopting the wrong means".


WHY WERE THE ACCOUNT FALSIFICATION CHARGES UPHELD?

These were related to entries recorded in the church's accounts in October and early November 2009 showing that the sham bonds purchased by the church's building funds were redeemed. The court held that the accused were aware the entries were false and they intended to defraud.





WHAT DID JUDGES SAY ABOUT KONG HEE?

Kong's role was that of "spiritual leader" of the five others, providing the "overall direction and moral assurance for their actions". Thus, his overall culpability was the greatest.

He was also one of the main players - if not the main one - who had influenced the others into using the church's funds to purchase sham bonds, even if he did not directly participate in redeeming them.


WHAT DID THE DIFFERING JUDGE SAY?

Justice Chan Seng Onn, in differing from Judge of Appeal Chao Hick Tin and Justice Woo Bih Li, noted there were elements of benefit to Kong and his wife, Ms Ho Yeow Sun. There was also permanent financial loss to the church.

Justice Chan called for a dismissal of the appeals for the six accused and prosecution.
















Ruling may set new legal position on CBT
Decision departs from 1970s precedent in interpreting criminal breach of trust
By Selina Lum, The Straits Times, 8 Apr 2017

A key aspect of the verdict in the City Harvest Church (CHC) case could have wider ramifications for future criminal breach of trust cases, said lawyers.

CHC founder Kong Hee and five other church leaders had their sentences reduced because - while they were found guilty of criminal breach of trust (CBT) - they were cleared of the more serious charge of committing CBT as "agents".

Instead, they were convicted on plain CBT under Section 406 of the Penal Code, under which the maximum penalty is less than half of that for aggravated CBT under Section 409.

In reaching this conclusion, the High Court broke away from a legal position - based on the 1970s High Court case of Tay Choo Wah - that has prevailed in Singapore for the past 40 years.

Till now, directors who misappropriate the property of the company they are entrusted with are liable for the more serious offence of CBT as agents, under Section 409 of the Penal Code.

Section 409 makes it an offence for a person who misappropriates property that is entrusted to him "in the way of his business as a banker, a merchant, a factor, a broker, an attorney or an agent".

But yesterday, two judges out of a three-judge High Court panel ruled that directors such as the CHC leaders cannot be considered "agents" under Section 409.

The majority interpreted the provision to mean that in order to be found guilty under Section 409, the accused must be "in the business of an agent" at the time the property is entrusted to him.

Judge of Appeal Chao Hick Tin said the provision applies only to a "professional agent" who offers his services as an agent or makes his living as an agent.

In addition, the relationship between a director, who is entrusted with the property, and the company, which is the one entrusting the property, is an internal one. This stands in stark contrast, he said, to the external nature of the relationship that "a banker, a merchant, a factor, a broker (or) an attorney" shares with his customer who entrusts the property to him.

The second judge, Justice Woo Bih Li, agreed with him. The third, Justice Chan Seng Onn, disagreed.

Justice Chao stressed that the judge who convicted the CHC leaders was not wrong. This is because, as a lower court judge, he was legally bound by the Tay Choo Wah case.

The decision has significant ramifications, say lawyers.

"It will impact the way company directors who commit CBT of company funds are charged in future," said Mr Lee Teck Leng of Lee Chambers, who has been a criminal lawyer for over 20 years.

Mr Shashi Nathan, a partner at Withers KhattarWong, said: "There will be a rethink on how to prosecute accused persons in the future. For defence lawyers, there will be a seismic shift in how we pitch our cases."

Mr Lee said that as there are now two conflicting High Court decisions, the matter could go up to the Court of Appeal by way of a criminal reference on a question of law of public interest.
































































Teary eyes after court hands down verdict
By Melody Zaccheus and Yuen Sin, The Straits Times, 8 Apr 2017

Eyes turned red and filled with tears after the six City Harvest Church (CHC) leaders at the centre of a long saga heard the verdict handed down by the High Court.

The reality of a jail term hit CHC leaders Sharon Tan, 41, and Serina Wee, 40, particularly hard as they teared up while exiting court.

Meanwhile, Tan Ye Peng, 44, looking contrite, hugged and shook hands with supporters who respectfully addressed him as "pastor". Tan's lawyer N. Sreenivasan said he "regrets the turmoil the church has gone through".

The six sat behind a glass screen in court yesterday, stoic and solemn, as the verdict was delivered.

Church founder Kong Hee, 52, later took to social media to say: "I know that many of you have been praying and fasting for the team and (me). I am very thankful for the support and prayers that have been shown to our families."



Speaking softly over the phone to The Straits Times, his wife, CHC executive director Ho Yeow Sun, said: "Keep my family in prayer. It is a difficult time for us."

Mr Kenny Low, husband of former finance manager Wee, said they have mixed feelings over the decision. On her reduced sentence, he said: "It is just a number. It is still time lost and the opportunity to be with your loved ones taken away."

Five of the leaders had asked for two weeks of deferment in serving their sentences, citing reasons such as spending time with family over Easter on April 16, and the need for time to consider legal options.

Former CHC finance manager Sharon Tan's husband and two children will be relocating to the United States on an expatriate package, and she sought to have the sentence deferred by two months.

Although disappointed that there was no acquittal, Tan recognised that her sentence was cut from 21 months to seven months. Her lawyer Paul Seah said: "Now, it will be time for Sharon to pray and spend time with family."

Meanwhile, former CHC finance committee member John Lam, 49, said: "(I am) obviously sad... Ultimately, we did it for the church, for the Crossover (Project)."

Cell group leader and finance manager Lim Choon Kiong, 38, told The Straits Times: "I do know a couple of the leaders personally... Most of them have children or are sole breadwinners. Their jail terms will impact their families a lot."

Former CHC fund manager Chew Eng Han, 56, who has left the church, said he had expected his conviction to be overturned. "I will spend the next few days thinking about my grounds for appealing."

Responding to The Straits Times, the National Council of Churches of Singapore, which represents over 250 churches, reiterated the need for churches to be "extra vigilant about matters of sound governance". It said its president Rennis Ponniah, on behalf of the council, "will be sending a personal message to express our continued prayers for Pastor Kong Hee, his family and CHC, and also assuring him and (CHC of) continued fellowship with us as part of the body of Christ".

Additional reporting by Toh Wen Li, Abigail Ng, Raynold Toh, Zhao Jiayi











 






 



































 
















































 












 
































City Harvest trial: A very extravagant way to spread gospel, says judge
It could have used ads or concerts, instead of spending $24m on Ho's music career, he says
By Danson Cheong, The Straits Times, 22 Sep 2016

There are cheaper ways to evangelise than the $24 million that City Harvest Church (CHC) spent on Ms Ho Yeow Sun's pop music career.

The church could have bought television or newspaper advertisements. Or it could have organised Korean pop concerts, with CHC senior pastor Kong Hee preaching afterwards.

Instead the way it went about spreading its gospel was "very extravagant", said Justice Chan Seng Onn in the High Court yesterday.

Justice Chan is one of three judges hearing the appeal of the six CHC leaders convicted of misappropriating millions in church funds to promote Ms Ho's career in a mission known as the Crossover Project. Yesterday was the close of the five-day hearing, and a judgment will be delivered at a later, as yet unknown, date.

Of the many ways to evangelise, Justice Chan said: "It can be through Sun Ho singing, (or) it could be engaging, at a much cheaper cost, maybe K-pop (singers) and Kong Hee can come to the concert and then preach."

He spoke as the prosecution was presenting its arguments. It wants longer sentences for all six CHC leaders, who face terms of between 21 months and eight years. It is asking for terms of between five and 12 years instead.

The six CHC leaders are appealing against their conviction and sentences.

In October last year, the lower court found the CHC leaders had ploughed $24 million from CHC's building fund into bogus bonds used to fund the music career of Ms Ho, who is Kong's wife. Another $26 million was used to cover up the initial misdeed.



Justice Chan asked if members had supported the means in which the Crossover was carried out.

They did, said deputy public prosecutor (DPP) Christopher Ong, but "what they didn't know was how much the means was costing and they didn't know who was paying for that cost".

Later, Judge of Appeal Chao Hick Tin also asked if the CHC leaders had been carrying out what they thought was a church purpose - "only they took the wrong route or the wrong means".

But DPP Ong said it was more important for the court to ask if church members supported the Crossover because they were not given the full facts about it.

Offering an analogy, he said: "If I were to offer you a Ferrari and I tell you that it is free of charge, you might well take it because, why not, it's free.

"If I tell you that I'm going to give you a Ferrari but use your money to pay for it, you may not be so supportive of the idea of my giving you a Ferrari."

He also told the court the six had not shown remorse - which ordinarily would be a mitigating factor.

"Restitution amounts to saying 'I am sorry', and this is not something we have heard from the offenders in this case," he said.

During the five-day hearing, lawyers for the five CHC leaders, and former CHC fund manager Chew Eng Han, who is representing himself, delivered impassioned arguments - often before a courtroom packed with over 50 people.

They stressed that the bonds used to fund the Crossover were genuine investments. Furthermore, the Crossover, which aimed to create "a megastar" in Ms Ho - who would attract non-Christians who could be preached to at her concerts - was a project that was supported by the church, said the lawyers.

At the close of yesterday's hearing, Justice Chao adjourned the case to give the judges time to go through the trial's voluminous record.

No date for a judgment was given by Justice Chao, who said: "This is something we need to give special consideration to... we can only promise you a judgment ASAP."
























City Harvest trial: Church leaders showed no remorse, says DPP as he calls for harsher sentences
By Danson Cheong, The Straits Times, 21 Sep 2016

Was the City Harvest Church (CHC) project to evangelise through the pop music of Ms Ho Yeow Sun a church purpose, or one that CHC leaders had foisted upon the congregation?

Deputy Public Prosecutor Christopher Ong asked the High Court this on Wednesday (Sept 21) in the ongoing appeal of the six CHC leaders at the centre of a multi-million dollar financial scandal.

In October last year, the six CHC leaders were convicted of misappropriating millions in church funds to fuel the pop music career of Ms Ho, the wife of CHC senior pastor Kong Hee, in a church mission known as the Crossover Project.

The court found that they had invested $24 million from CHC's building fund in bogus bonds from music production company Xtron and glass-maker Firna, but this money was, in fact, used to fund the Crossover Project.

Later, another $26 million was used to cover up the initial misdeed.

The six, including Kong, are appealing against their convictions and sentences, while the prosecution is also appealing - for longer sentences.



The lower court had found that the Crossover Project was "indisputably a church purpose", but DPP Ong pointed out that it was the six CHC leaders who determined what was in the church's interests and has silenced dissenting points of view.

"What this calls into question is whether they can really say they were pursuing CHC's objectives or they were really pursuing a mandate that they had created and then foisted upon CHC," said DPP Ong.

Rebutting the point made by the six that the Crossover Project was supported by the majority of church members, DPP Ong said the support for the Crossover Project must be viewed in the context of what members were told about the project.

"They were not told who would be footing the bill," said DPP Ong.

He pointed out that the offenders had not shown remorse - which ordinarily could be a mitigating factor.

"Restitution amounts to saying 'I am sorry', and this is not something we have heard from the offenders in this case," he said.

"What we submit is, this is not a case of altruistic individuals who nobly set out to fulfil the goals of CHC."



The prosecution asked for much harsher sentences - jail terms of 11 to 12 years jail for Kong, CHC deputy senior pastor Tan Ye Peng, former CHC fund manager Chew Eng Han and former CHC finance manager Serina Wee; eight to nine years for former CHC finance committee member John Lam; and five to six years for former CHC finance manager Sharon Tan.

The lower court handed out much lower terms in part because it found that the six had not been motivated by personal gain, and the church had not suffered any wrongful loss.

The six were given jail terms of between 21 months and eight years, with Kong facing the longest term.

The appeal, which ended at about 5.30pm, was heard by Judge of Appeal Chao Hick Tin, and Justices Woo Bih Li and Chan Seng Onn.

"We can only promise you a judgment asap," said Judge Chao, who added that the trial's record was voluminous.









City Harvest leaders deceived members, auditors, lawyers: DPP
They subverted church's internal governance bodies, used positions of trust to misspend funds, court hears
By Danson Cheong, The Straits Times, 21 Sep 2016

The six City Harvest Church (CHC) leaders deceived church members, auditors and lawyers, and subverted the church's internal governance bodies, the High Court heard yesterday.

They used their positions of trust to misspend millions of dollars in charity funds - the largest amount in such a case in Singapore's legal history - on a pop singer's music career, according to Deputy Public Prosecutor Christopher Ong.

He was responding to the arguments against conviction put forth by the six CHC leaders at the centre of the financial scandal.

In October last year, the six were convicted of misappropriating millions in church funds to fuel the pop music career of CHC senior pastor Kong Hee's wife, Ms Ho Yeow Sun, in a church mission known as the Crossover Project.

The court found that they had invested $24 million from CHC's building fund in bogus bonds from music production firm Xtron and glass-maker Firna, and the money was used to fund the Crossover Project. Later, another $26 million was used to cover up the initial misdeed.

The six, including Kong, are appealing against their convictions and sentences - ranging from 21 months' to eight years' jail - while the prosecution is appealing for longer sentences.



DPP Ong said the CHC leaders knew the bonds were "excuses to expend building fund money on (Ms Ho's) music career" and not investments.

Addressing the arguments by the CHC leaders that there was a need for secrecy in carrying out the Crossover Project in order to avoid uncomfortable public scrutiny, DPP Ong said it was strange since the only thing needing to be "secret" was the fact that Ms Ho was funded by the church's building fund - which was "buried so deep that even the auditors don't know about it".

He said it was public knowledge that Ms Ho was "famous pastor Kong Hee's wife", and Kong would come out to preach at the end of her concerts.

"Where is the secrecy in this?" asked DPP Ong, adding that Kong and his conspirators also controlled the bond proceeds, choosing to spend them on the Crossover Project and deciding how and when they would be repaid to the church.

Justice Chan Seng Onn asked: "If I put out the money and eventually pay back to it myself, just sweeping around, playing around it myself, having full control of it, how can you call it an investment?"

DPP Ong replied: "Yes, your Honour, that is exactly our point."

Another issue discussed in court yesterday was whether the offences committed by the six CHC leaders fell under the ambit of Section 409 of the Penal Code that they were charged under.

This is the most aggravated form of criminal breach of trust, and sets out the offence as one committed by a person "in the way of his business as a banker, a merchant, a factor, a broker, an attorney or an agent banker, merchant or agent".

In this context, Justice Chan asked if "the church, as a society, is in the business of courting donations", with agents of the church then being seen as agents carrying out such business. DPP Ong disagreed. But he said Section 409 concerns individuals who "customarily and regularly are entrusted with funds which they are then supposed to take responsibility for".

Judge of Appeal Chao Hick Tin said that if the elements of Section 409 are not satisfied, the charges could be reduced. Arguments for the appeal will continue today.















































































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